Global Definitions Database

A distribution of Carried Interest in which the GP receives distribution of profits as investments are monetized through refinance or sale.  Gains from investments are not offset by losses or write-downs from unprofitable investments until last in the fund life.  A Clawback provision is generally used to require the GP to return profits if LPs do not receive their Preferred Return and return of capital during the fund life.  Also known as Interim Carry or American-style Carry or Waterfall.  See also Full Pool Carry.